Thousands of commercial agreements are executed every day, most
of the times with at least one party having a payment obligation.
Although the said party may have the option to fulfil this
obligation by paying cash on the due date, other means of payment
such as negotiable instruments are also frequently used. From a
Turkish law perspective, this is because negotiable instruments are
not just payment tools. Their ease of transferability and most
importantly their independence from the underlying contractual
relationship between the parties of the relevant transaction make
them the preferred choice for a number of other reasons.
This article is intended to provide its readers with general
information on the validity and enforceability of promissory notes
(or bonds) under Turkish Law, which are among the three types of
negotiable instruments1 (kambiyo senedi)
stipulated in the Turkish Commercial Code (the
TCC). A concise explanation on the special
execution proceeding,
